Profitability and Labour Use in Cropping Systems

The study used plot level data from 16 villages of semi-arid tropics of India for the crop year 2010 for analysis of the profitability and resource use among different cropping systems. It also examined the relationship between farm size and labour use. The study estimated production function to know the resource use efficiency across the cropping systems and locations. The study shows that input intensive cropping systems like cotton, paddy, wheat, fruits and vegetables were more profitable across many of the SAT villages than coarse cereals, pulses and oilseeds based cropping systems. The results also show that the sub-optimal use of land and labour, as indicated by higher marginal returns. Farm mechanization is higher in rice-wheat and high value crop based cropping systems, while labour use is more in cotton based cropping systems. Farm size is having positive association with the hired labour use and farm mechanisation, but had negative association with family labour. Female employment had inverted “U” shape relation with farm size. The expenditure on seed and other inputs including irrigation, pesticides, FYM was sub-optimum